Corn futures closed lower on Friday. After hitting new highs on Monday, futures have turned lower on fund selling and anticipation of that index fund rebalancing will lead to selling pressure. Strength in the dollar this week has also been bearish. Early next week, traders will be gearing up for the USDA Supply/Demand report due out on Wednesday morning. March ended 7 cents lower at $5.95 and May was 7 cents lower at $6.03 3/4.
Soybean futures traded lower on Friday. Technical selling and fund long liquidation weighed on the market again today. Forecasts calling for improved weather for the soybean crop in Argentina also pressured prices. Traders were also even positions ahead of the weekend and next week’s Supply/Demand report. January ended 11 3/4 cents lower at $13.57 3/4 and March was 13 cents lower at $13.65.
Wheat futures are lower at midday. The market was pressured by profit-taking and long liquidation ahead of the index fund rebalancing, which is expected to cause funds to sell wheat futures. Concern about poor crop quality in Australia has largely already been factored into the market. However, concern about tight supplies of high quality wheat globally helped limit further losses. CBOT March ended 15 cents lower at $7.74, KCBT March closed 12 1/4 cents lower at $8.46 1/4 and MGE March was 13 cents lower at $8.70 3/4.
Cattle futures closed lower on Friday. Ideas that cash trade will turn lower next week and the 43 cent drop in choice boxed beef prices at midday weighed on futures trade. Cash prices turned slightly lower this week after hitting the highest level since 2003 early in the week. Packers are slowing slaughter in an effort to reduce beef supplies in an effort to improve poor margins. February ended 35 cents lower at $106.38 and April was 25 cents lower at $110.55.
Lean hog futures settled mixed on Friday. Front end futures were pressured by profit-taking from recent gains and the steady to firm tone in the cash market. Smaller slaughter schedules for Saturday and narrow packer margins forced packers to lower bids. Futures were up strongly on Thursday on optimism that a deal with Mexico over allowing trucks in the U.S. will aid pork export as Mexico would lift duties on some U.S. goods. February closed 35 cents lower at $79.43 and April was 5 cents lower at $84.05.